Error in vmware machine copy

I have one virtual machine , where in RHEL 5.3 is already working. The folder name is 4_RHEL. I have created one more folder. The folder name is 7_RHEL. I want to copy all the files from 4_RHEL to 7_RHEL . During the copy of .vmdk files I am getting the error. Please see the link.
http://picasaweb.google.com/101678436198576131133/ Vmware?feat=directlinkAccess this link and select slideshow and press F11 to see it full screen. The space available on the machine is 700GB and RAM available is 10GB. It is vmware version 2.0
Please help me as there is no option to clone the machine.

Why you don't try to make a clone of the machine. It will copy automatically all the virtual machine to the folder you want to. But, as Romeo Ninov already said, the guest MUST be close. You cannot clone a machine if it is suspended. Shutdown the guest, and you can easily copy it / clone it.